May 2010

There are 1 blog entries for May 2010.

Investigation into Big Investment Firms Providing Misleading Information to Credit Rating Agencies Launched

Monday, May 17th, 2010 at 3:48pm. 1079 Views, 0 Comments.

Investment Firms selling Mortgage Backed Securities being Investigated

What happens when you have a Giant Pool of Investment Money looking for "Safe" investments with high Credit Agency ratings?

To keep it as simple as possible, Hundreds of Billions of dollars are released and made available to make housing loans available. Demand creates lax lending standards and new exotic home loans. Anybody who can sign a document is given a home loan even if they don't make enough money to pay it back. So called Real Estate Investors go out and make speculative purchases on multiple home purchases even though they will never cash flow on the rental market. New Home builders build away, selling out tracts of subdivisions even before a foundation is poured - Adding to the…